In case you have just returned from Outer Space- the UK Government has announced that it is holding a referendum on 23 June 2016 on the question:
“Should the United Kingdom remain a member of the EU or leave the EU?”
In the meantime, whilst the UK decides whether to Brexit or not, the EU Commission is taking a “business as usual” stance.
A forthcoming European Commission consultation on the key differences between insolvency and early-restructuring regimes across the EU was one of the measures announced in a speech by Commissioner Jonathan Hill at the European Banking Authority’s 5th Anniversary Conference on 5 February 2016.
The Commission will consult on the key differences between insolvency and early-restructuring regimes across the EU. By the end of 2016, the Commission aims to introduce legislation to address the most important barriers to the free flow of capital, building on national regimes which work well. Work on national options and discretions will also continue in order to avoid differences in rules that stand in the way of competition and trade across the single market. The UK will only get the full benefit of any changes if we vote to remain in the EU.
In any event, the UK will still be in the EU when the Recast Insolvency regulation comes into force on 26 June 2017. Even if the result of the UK referendum in June 2016 is in favour of Brexit, the procedure for leaving (which is set out in Article 50 of the Treaty of the European Union) requires the UK to give two year’s notice to leave- so June 2018 at the earliest.
The irony cannot be lost of the fact that the UK is due to hold the rotating presidency of the EU Commission for 6 months from July to December 2017, which could be interesting if the UK votes for Brexit.
Click here for further information on the issues which will arise from a Brexit for Lenders and Restructuring Professionals: